High-yield twins: agency bonds are as safe as Treasuries, yet offer more kick.

Black EnterpriseVol. 28 Nbr. 3, October 1997

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Summary


Government agency debt bonds

Bonds issued by such US agencies such as Home Loan Mortgage Corp (Freddie Mac) or Federal National Mortgage Corp (Fannie Mae) pay higher yields than regular 5-year Treasuries. Tips are given on the pros and cons of investing in agency bonds. Suggestions include both individual bonds and mutual fund bonds.

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High-yield twins: agency bonds are as safe as Treasuries, yet offer more kick.

There are few things as secure as Treasury bonds. Named after the department in Washington that issues then, they're backed by the most trustworthy borrower of all time--the U.S. government. To sweeten the deal, the interest they pay has flirted with as much as 7% several times this year. So how do y...

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